The US has indicated a potential $5bn loan offer to the Philippines to finance its nuclear energy development. The preliminary offer emerged during a trade mission to the US by a Philippines delegation, including Department of Energy (DoE) Undersecretary Giovanni Bacordo, which held talks with the US International Development Finance Corporation (DFC).
The 25-year payable loan is specifically tailored for private power corporations looking to invest in nuclear infrastructure. Manila Electric Co. (Meralco) is currently leading the country’s nuclear framework, supported by an earlier $2.8m technical financial assistance grant from the US Trade & Development Agency (USTDA). Other Philippine power companies that have expressed interest in the nuclear programme include, Aboitiz Power, San Miguel Power, and Prime Infra.
The DoE is also engaging the US Export-Import Bank (US EXIM) for feasibility and design assistance, and the Asian Development Bank (ADB) for credit enhancement to make the projects bankable.
The funding aligns with the Philippine government’s ambitious target to launch its first nuclear power by 2032. US industry executives project that micro-modular reactors (MMRs) could see early local deployment around 2028, with small modular reactors (SMRs) targeting rollout by 2030, pending strict regulatory and licensing validation.
“But let me be clear, these timelines require further validation alongside demonstration, licensing, and delivery progress. When it comes to regulation, early preparation is critical,” Bacordo said.
The Philippines is targeting 1,200 MWe of nuclear capacity by 2032, increasing to 4,800 MWe by 2050. Potential sites include Bataan, Batangas and other provinces. The fate of the mothballed Bataan NPP (BNPP) is still unclear with attempts to revive the plant facing fierce opposition. Private developers are expected to submit formal proposals for new nuclear by 2027. The initiative comes as rising electricity demand and high fuel prices intensify pressure on the power supply.
